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Descending Broadening Wedge

BTCUSD 1H chart (5/23/2019)Good morning traders. Good ol' volatility showing up some more yesterday has returned price to the $7400/$7500 level, depending on which exchange you are looking at. Today, I am looking at Coinbase. The big points to remember are that there are multiple patterns we could be seeing playing out on the larger TFs, which I have discussed over the past week. These include the double top (for all you bearish traders out there) which will not be confirmed until price closes below the swing low between the two peaks, ascending triangle, pennant, flag, and now this descending wedge. The reality of what's going on is that price has continued to remain above the EQ of this very large trading range, so while most retail traders are freaking out and shorting because they are sure that price is headed below $6000, I am taking a much more measured approach to price action at this time. The big tell for me, at the moment, is that the daily Stoch RSI is oversold. While it can remain oversold or overbought for extended periods, the few times it has happened in the past while daily RSI was overbought or just leaving overbought, price has continued up. The 4H Stoch RSI is also oversold. It is only these smaller TFs that are showing Stoch RSI at overbought. Price is currently attempting to exit the red descending wedge's resistance as shown with a target of $7870 based on the height of that wedge. This is within the larger black descending wedge which has a likely target of around $8600, based on the height of the wedge, depending on when price breaks through its resistance. What I don't like about the current situation is that price has dropped through the pivot. Because of the sideways action, we may be able to assume that price is just consolidating around that pivot, but we need to see it push above the pivot resistance. Rejection at the pivot would likely indicate further downside. However, as mentioned above, the large patterns that may be printing make is most probable that price would not fall to $6000 or lower at this time. The red descending channel which is holding the large descending wedge shows price back above its EQ, which is bullish and should have traders expecting a return trip to the top of the channel. Before price can do that, it must get above the 21 EMA which is currently holding it in check. As you can see, from the 1H to the daily TF, we really have no definitive direction. It is supply and demand fighting it out. This is why I have continued to caution traders against trading in this range. Support levels to watch on Coinbase are the large TR EQ at $7425, red descending channel support, S1 pivot at $7070, and large TR support at $6600. The CME Bitcoin Futures chart looks the most bullish as price pushed up through the 4H pivot, was rejected at the R1 pivot, and is now just retracing above the pivot. As far as the daily chart is concerned, price is bouncing off the R3 pivot after being rejected at the R4 pivot. Again, this is bullish. While futures volume has fallen off from its ATH on May 13th, today's volume is already almost equivalent to yesterday's and is showing demand in control first thing this morning. Follow through for the rest of the day could be quite bullish for the weekend. However, supply is showing heavy in the orderbooks around $7800, so traders beware. If price can get above $8000, the HVN should provide support once more. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
COINBASE:BTCUSDLong
by Chris_Inks
7
BTCUSD 4H/1H charts (5/6/2019)Good morning traders. We had a great weekly close and, so far, have seen the previous supply zone flip to demand and support price as I mentioned was most likely to happen. Price has continued to consolidate between the top of the demand zone and the top of the ascending channel, but upward overall. However, we need to see some more significant price appreciation sooner rather than later as too much time spent sitting in this zone will lead to a drop in price once the demand is taken out by supply pressure. The 4H chart printed a bullish engulfing candle with Stoch RSI bottomed out and crossing bullishly while RSI remains bullish at 52.6. Price is attempting to close above the 21 EMA as well as it sits just above the pivot. While the 4H may look a bit ominous over the past three days (possible very narrow double top printing with a close below the purple line at $5510 confirming it), the 1H shows price currently printing a descending broadening wedge within a minor ascending channel within the greater 4H ascending channel. A breakdown of the minor ascending channel today or tomorrow would likely have price targeting the S1 pivot around $5240 to the ascending channel support just below it which would fill in the lower gaps. I will be watching for the 1H RSI to break through its descending resistance to suggest stronger upward momentum on the shorter TF. This should coincide with the 4H RSI doing the same, which would then give me reason to believe more significant upward momentum is on the way. I do have some concerns. There are 1H gaps below price at $5514.53 and $5180.91, with the latter situated near the EQ of the demand zone. This doesn't mean that price must fill those gaps right now, but the longer price just "hangs out" at its current level the more likely they will be filled before further upward progression. There is also a gap above price at $5714.40. For now, price does appear ready to continue its journey upward toward the targets mentioned in my previous analysis. Will price surge through the resistance of the various ascending channels to reach those higher targets or will it just continue to move up a bit, consolidate, and move up some more? We will see, but the channels do give us an idea of the levels to watch along the way, especially where they find confluence with other resistance levels and/or targets. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDLong
by Chris_Inks
2
BTCUSD 4H/1D charts (4/30/2019)Good morning, traders. It appears that we are getting some action this morning as price popped out of a few patterns and is testing the resistance of another. Tomorrow is the monthly close. This movement is not unexpected at all if you've been following my analysis. Price action and volume analysis across multiple TFs have suggested that this is the most likely movement, but can demand follow through? Price is now above the 21 EMA on the 4H chart once again, as well as being at the top of the HVN. It still remains a bit below the 4H pivot, though. So far, 4H RSI is trending within the ascending channel it printed. A fall through the channel support would most likely signal downward price progression. If the daily RSI pushes through its descending resistance, traders should be looking at higher targets. There are four targets based on the patterns. The first is just above that pivot at $5265 and is based on the height of the red descending channel. The second is $5435 and will come into play once price exits through the purple ascending triangle's resistance. This second target is also at the ascending dotted channel's EQ. The third is $5660 and is based on the height of the red descending broadening wedge. This third target also puts price at the November 18th high which is important because continued movement above it sets into motion the possibility of liquidating the shorts initiated there at that time. The fourth target is at $5918 and is based on the height of the large blue TR, but will not activate until price closes above that upper blue horizontal line at the top of the TR. Will price make it to that fourth target and then be rejected, or will it continue toward $6300 and get rejected at the HVN? Nobody knows for sure, but the HVN argument makes a lot of sense. I have explained the higher targets over the past few weeks so feel free to look back through my previous analysis. The possible checkmate pattern that I discussed yesterday should have price targeting the $5510 level, where it began, if it plays out. After the recent high almost taking out the whole of supply in that area, it doesn't seem likely that there will be enough supply there to suppress price if it gets to that level. The is a lot of defending of the $5200-$5300 level still happening suggesting that there are possibly some strongly over-leveraged shorts sitting just above. A sudden move above $5300 might just set them off causing a small squeeze toward the other cluster of shorts in the $5600 area which could lead to a much larger squeeze. However, the longer it takes price to get moving up that way, the less likely the squeeze becomes as traders start getting nervous and exiting their short positions. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDLong
by Chris_Inks
2
BTCUSD 1H/4H charts (4/26/2019)Good morning, traders. Yesterday's price action has everybody instantly bearish... again. It also shows why I am always discussing the importance of risk management and intelligent stop losses. No matter how good you may feel the charts look at the time, absolutely anything can happen. In this case, we've been discussing the possibilities of having topped out or having one more small leg up into $6000. Yesterday I, again, discussed the bearish divergence that was printing on the daily. I have warned traders countless times to wait for confirmation before entering a position and not to allow their boredom or FOMO to direct their trading. I could afford to continue looking at higher targets because I was already long and continue to remain long at this time. CME Bitcoin April Futures expire in a couple of hours, and we usually expect to see some volatility leading up to that, so be careful if trading at this time. As far as price goes, as long as we continue to close above ~$4700, price has done nothing more than confirmed the TR that began on April 3rd. Even if it were to drop below a bit, it could be nothing more than a Spring, so traders should be paying attention to volume and price action. If price closes above $5200 (we are talking about the Bitstamp chart), then things start to get interesting. A close above $5320 sets up a possible move higher. So far, we have seen a rebound of between 50% and 61.8% as I told our Discord members I expected last night, and price appears to be flagging while finding support on the recent resistance. This suggests more upside in the near term. I also mentioned to our Discord members that there is a gap around $5400 which I would expect to see price fill in. Here's the kicker that nobody is talking about: the 4H candle that encompassed yesterday's drop of just over $500 was almost exactly the same size as the 4H candle drop on April 3rd, yet the volume was slightly less than half, and it was also less than the volume of the $250 drop on April 11th. Everything else aside, this comparison generally tells us that there wasn't the conviction to sell this time around that there has been. If there isn't market conviction to sell, then price generally heads back up. This doesn't guarantee that we will see price return to the recent high, but we shouldn't be surprised if it does. Daily RSI fell through support, which is a potentially bearish sign. However, the 4H RSI bounced off oversold and the 1H RSI dipped well into oversold, just recently pushing above it. The 1H MACD printed a bullish cross earlier this morning and, currently, we have hidden bullish divergence printing on the 1D RSI and on the 4H MACD. The 4H Stoch RSI is in oversold and the 1H Stoch RSI has just recently moved into overbought. BTCUSD Shorts are very overbought and Longs are just the opposite. It's the potential spark that could send price into a short squeeze, especially with expected CME volatility. I added the red descending channel on the 1H chart. In the near term, a close above the channel's EQ should have traders looking for price to target the channel's resistance. A break above the channel's resistance would give us a target of ~$6000, but of course the HVN is a few hundred dollars higher. Another way to look at the red channel is as a possible descending broadening wedge, which I've drawn in purple on the 4H chart. The target of ~$6000 remains the same. It would be bullish to see price moving above the HVNs on the various TFs. RSI breaking through its resistance on the 1H and 4H TFs would confirm some upward momentum. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
5
BTCUSD D1 chart (3/25/2019)Good morning, traders. Volume precedes price. The frustration among traders is reaching an almost frenzied level. Retail traders, especially in crypto, are not patient and this is why they tend to lose a lot of their capital. They tend to have strong opinions that are weekly held, rather than weakly held. What I mean is that they tend to fip-flop between bullish and bearish rather than trade the chart and this causes them to enter positions poorly and/or exit them emotionally. They tend not to wait for setups to complete, rather they jump in out of boredom, emotionally hoping that the trade goes their way. But there is little room for hope in trading. Without a trading plan you are guaranteeing the loss of your capital over the long term. So where does this leave us today? Well, since price is just moving sideways, I decided to pull out the line chart as I have done on occasion. Here we have the BLX daily line chart. Line charts connect plotted points with lines. These points are the period closes (in this case, daily closes). Charting in this way removes a lot of the noise that can result in paralysis analysis when looking at candle charts. The purples lines denote the large descending wedge that has been printing throughout this correction. We can also see price printing an ascending triangle from the purple wedge support to it's resistance. I've heard a lot of nonsense talk about the volume being low. As I have said many times before, simply saying volume is "low" or "high" means absolutely nothing. "Low or high compared to what," is what you want to know, as well as any patterns that may be in play. We can clearly see that price has been printing this ascending triangle and that volume has increased on the moves from support to resistance while, overall, dropping. Smaller movement between lows and highs result in decreasing volume and volatility until price breaks out. Volume and volatility are dropping because price is coming to an apex. Looking at it another way, even though price is dropping overall due to the ascending triangle whose apex price is moving toward, we see greater volume in general when price is near the top of the triangle and lesser volume in general when price is near the bottom of it. This tells us that there is much more interest around $4000 than there is around $3100. Speaking of volume, let's take a look at OBV (on balance volume), also known as the smart money indicator. This is a volume flow momentum indicator which give us an indication of whether volume is flowing in or out. OBV rises if the current period's closing price is higher than the previous period's (current period's volume is added to previous period's volume) and drops if the opposite occurs (current period's volume is subtracted from previous period's volume). Because the indicator is cumulative, the actual number shown on OBV doesn't matter, but what does matter is the slope of the line. What we are watching for is divergences between price and OBV. If price is dropping or remaining flat but OBV is rising, then this suggests that smart money (professionals) are buying while retail is selling and that price will head up. If price is rising but OBV is dropping, then this suggests that smart money is selling while retail is buying and that price will head down. We can see that price has failed to print a new higher close since February 23rd, but OBV has continued to rise, breaking its overhead resistance on March 14th. As mentioned, this suggests that smart money is likely buying what retail is selling and should lead to a new higher close. Currently OBV remains above the 20 day EMA, but if we see OBV closing below it then it should be considered a signal that price may be preparing to head lower. This is also a larger TF, so we could see a quick move down and then back up which wouldn't negatively affect this outlook. As always, this is just one indicator and traders who utilize indicators should never rely on just the one. It should always be used in conjunction with other indicators and/or price action/volume analysis. What I am most interested in regarding OBV on the daily TF is whether OBV continues to rise, overall, if we see a price drop toward the ascending support. I will add a few other TFs below to give a more near-term look at what's going on, but you will be able to see why you should be waiting for confirmation before entering. There are a lot of conflicting signals at the moment, and even a drop may just be sudden with a similar hard rise immediately following. So, even if you were waiting for the drop into the mid-$3000s, would you be able to get your orders filled? There is a lot to consider at this time depending on your TF that you are planning on trading. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BNC:BLX
by Chris_Inks
BTCUSD D3/W1 charts (3/14/2019)The D3 chart looks a lot more promising than the smaller TFs at this time. A pennant/symmetrical triangle is currently printing and a bullish break should have price targeting the $4150/60 level as well as place price just under the neckline of the possible purple IHS that some people are watching. RSI continues printing an ascending channel but traders should watch for a possible bearish drop through channel support. The W1 chart shows the multi-year ascending channel I spoke about in the smaller TF update I posted.
BITSTAMP:BTCUSDEducation
by Chris_Inks
Bitcoin Descending Wedge is getting closeSo Currently Bitcoin is in descending wedge pattern. We have seen multiple triangles (marked yellow) forming in this wedge, every one leading to breakdown. However, I don't think we will see this pattern again because the wedge is running out of space and soon btc will have to decide which way to go. Bear possibility is if we snap the wedge below 3400 it could lead to a fast washout to previous low around ~3200 and later on maybe even further. If btc decides to go up we could see it up to 4k. Volume is low, the action is low which should lead to big move soon. I will be watching this area closely and will enter the position either long or short once I see the confirmation.
BITFINEX:BTCUSD
by IDK13
5
A Perfect Wedge Forming! Have a Looksy and Trade WiselyLINKBTC is in a great trading position with the right stop loss set. As I have said in previous ideas, the direction of a breakout in a crypto wedge is hard to call. As we all know, crypto doesn't really follow market rules. With that said, my technique has been to buy in at a low resistance bounce when the wedge is starting to close in and then set a tight stop loss, like shown in my chart. Either way I will get a 10% gain in either BTC or LINK. At the target zone LINK will have a resistance bounce for a great cashout! Happy Trading!
by djupgrade
GBPAUD Ready to Accelerate - New Highs Coming!NOTE: This is just analysis/advice, DO NOT FOLLOW this trade blindly - I take no responsibility for it... Scenario 1: Looking at GBPAUD on the 1H timeframe, we can see that it is currently approaching the oversold region in terms of RSI, circa 30.0. This could be the first hint to a reversal. Right now I think this pair is in a descending broadening wedge structure, where I think it has hit the support line of the wedge, which could mean acceleration of this pair to the upside, once it does hit the support line exactly. Ideally I think this pair should then accelerate upwards. Short term targets: TP1: 1.81750 TP2: 1.82130 Long Term Target (within next week): TP1: 1.83500 (circa) The long term target has been taken by duplicating the distance from the highest point of the descending broadening wedge and then to the lowest point(E). This distance was duplicated on the resistance line where price should look to ideally head next. Scenario 2: If the descending broadening wedge structure is broken, we could see a pullback to 1.80650 however I see this as unlikely as this pair has recently been extremely bearish & RSI does not look to indicate this. If you managed to read it this far down, thanks for reading this! If you could, please do offer your ideas & perspectives on this pair. Buy or Sell and why? Additionally, drop me your charts for it, that'd be great so I can see where you are coming from. I'm a new guy to the FX & Crypto market, trying to learn FX & Crypto, and I'd appreciate any help people may offer! Please drop a follow! I nee`d reputation points!!
Long
by ShaunLeo35
Bitcoin Symmetrical Triangle. Next Trade Setup⋱ℌello dear friends, let's have a look at Bitcoin⋰ Structure and patterns: ≫ Clearly we in big symmetrical triangle structure, moving inside it closely to the apex. ≫ Inside this pattern, we can found another structure called Descending Wedge (Falling Wedge), it is bullish in two of three cases so it's 67% probability to be bullish, and 33% probability to be bearish. In this case we have a stop loss under previous swing low, at 3422$ Take profit situated at 3876$. With risk/reward ratio 2.33. ≫ Price currently broke Descending Wedge resistance. ∿ Indicators: ≫ Stochastic showing bullish divergence on 4h timeframe chart. ≫ Relative Strength Index showing bullish divergence on 4h timeframe chart.
BITMEX:XBTLong
by ArShevelev
4
BTCUSD - Descending Broadening WedgeI'm seeing a Descending Broadening Wedge on BINANCE:BTCUSDT Let me explain what I'm seeing: A: Top of the wedge. If B holds, this will be first take profit target for long. B: Bottom of the wedge. Decision point and first take profit target for short. If the bottom trend line gets broken (opening/closing a H4 candle below) it means this pattern has failed and we can expect a steep drop. If the top trend line is broken (opening/closing a H4 candle above) it means we can expect some new local highs. This pattern can take its time. There's no telling how long it will take to make the third valley. It also doesn't have to play out exactly on the 1.618 Fibonacci extension. I added some arrows for a possible partial rise/fall If you haven't I recommend reading up on the pattern if you want to learn how to trade it. Good luck and be safe :) Disclaimer: This is not financial advice. Your capital is your own responsibility. I am not responsible for your losses.
Short
by Sylvester_Turner
2
ETHUSD LONGOkay so we are at a very important price point for ETHUSD. We have been respecting the area of the descending wedge for a while now and we are getting to the very bottom and there is a very key support level where we could see a big move up in price if we breakout of this pattern. REMEMBER that the wedge is only valid once we have a confirmed break and close on the 1D chart. There is also a smaller descending channel on a lower time frame which I will post in the comments that could also break to the upside. If you guys like ideas like this one, follow me so I know you guys are interested and I will keep posting :D. Also if you guys have any questions about this idea, or about trading in general let me know in the comments or by private message! If you guys want me to do a TA idea on a specific pair (Forex or Crypto) let me know in the comments. Much love everyone and good luck in the markets!
BITFINEX:ETHUSDLong
by nick203
3
ETHBTC LONGWe are approaching the bottom of the descending wedge I have been looking at on ETHUSD. I wouldn't be surprised if we reach the bottom of the support level before breaking out of the wedge pattern. I also posted a short term wedge pattern on the 1D chart on the right, which could kick off the rise of ETH if we break above this pattern. REMEMBER wedge patterns are only valid once we BREAK and CLOSE above the pattern on their respected time frames. This mean that in order to enter a trade based on these patterns we must wait for the break and close. If you guys enjoy these ideas, follow me for more. Also if anyone has questions about this idea or trading in general feel free to comment down below or message me! :)
Long
by nick203